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“Consumers have never been more connected than they are
today,” stated Peter Katsingris, SVP, Nielsen
Audience Insights. “Media consumption is no longer restricted to the living
room but follows them wherever they go with the content of their choosing always
within reach.”
With Americans now spending an astounding 11 hours per day
using media, according to Nielsen, the stakes for media companies and
advertisers is high to insure that their messages are reaching the right
audiences at the right time on the right platform through the right device. Nielsen
has been diligently tracking consumer usage so as to offer their clients a more
accurate look at how today’s consumers are navigating their ever growing media
choices.
How will all of this impact the future of media? Katsingris offered
his insights into the latest Nielsen Total Audience Report:
Charlene Weisler: How can half of the average American's day be filled
with consuming media? Certainly there is a lot of multi-tasking but what about
de-duped usage?
Peter Katsingris: Within the 11 hours per day of media usage
there is some amount of simultaneous usage across devices.
Charlene Weisler: Where
is the greatest growth coming from? How will this impact future usage?
Peter Katsingris: The greatest growth is among TV-Connected
device use, whether it is the smart TV or other connected-devices that enable
streaming content to the TV set. Streaming will continue to grow as the way
people consume content through the TV glass evolves. Additionally, digital device usage,
particularly smartphones, is growing as consumers continue to personalize their
media use. The options available to the consumer will result in a more
“on-demand”, a la carte experience that consumers can access media anywhere and
through whatever device is most convenient to them at that time.
Charlene Weisler: TV
looks to be consistently #1 in time usage. Do you see that continuing?
Peter Katsingris: It’s often said that TV is dying, but our
data paints a different picture. People spend a lot of time in front of the TV
set, whether it is Live, watching recorded content via their DVR or on-demand
or even a subscription service through a TV connected device. Linear TV viewing
continues to remain a substantial portion of the overall share of media
usage. But it varies by
demographic. Younger adults spend less
time with linear than older adults and television accounts for a smaller
percentage of that time. However, they
still watch television and will continue in one form or another.
Charlene Weisler: Younger
viewers are consuming less live TV. What are the long term implications?
Peter Katsingris: Younger generations have always been early
adopters. With viewing content, early adoption means young people are engaging
with platforms and devices that drive new habits, however, some of these new
ways to connect still end up with a young consumer in front of a TV.
Charlene Weisler: How
much streaming is happening to the TV?
Peter Katsingris: Consumers are incrementally spending more
time on the television set streaming content. Overall, based on the Q1 2018
Nielsen Total Audience Report, half of adults 18+ are using TV connected
devices (DVD/Blu-Ray, Game Console, Internet Connected Devices, Smart TV apps)
to watch or use media content and that accounts for nearly 10 hours a week. Using
Nielsen’s Streaming Meter we have a more complete understanding of streaming
that’s occurring to the TV set. What we see is that among homes that have that
ability, one out of every 10 minutes for adults was streaming content to the
television set. Younger consumers having a higher percent of streaming of
overall total TV usage.
Charlene Weisler: Which
devices are consumers using to stream to the TV?
Peter Katsingris: Two-thirds of homes have the ability to
stream content via internet enabled TV connected devices like game consoles,
smart TVs or internet connected device (i.e. Apple TV, Roku, Google Chromecast,
Amazon Firestick). Teens are more likely to use game consoles to stream while
older adults use a smart TV. Across all
TV households, about a third only use one device and another third use more
than one device, indicating the multiple options consumers have. Typically
homes with multiple device use have a combination of a video game console with
another streaming device.
Charlene Weisler: What
are the overall SVOD trends that this report uncovered?
Peter Katsingris: The report focused on access to the three
main Subscription Video On-Demand services of Netflix, Hulu and Amazon Prime
Video. More consumers have and continue
to want access to these multiple channel(s) in their home compared to last
year. Among total households, access to these services is up to 64% of
television homes in March 2018, from 58% a year ago. Similar to devices that
enable streaming in the home, people have access to multiple services with 37%
of television households having access to 2 or more of the services.
Charlene Weisler: How
is SVOD impacting linear TV consumption?
Peter Katsingris: It’s hard to look at SVOD in a vacuum
because streaming encompasses a broad array of services, including SVOD, AVOD
(Advertising supported VOD) and Virtual MVPDs like Sling TV and Hulu Live. An
underappreciated impact of SVOD is that it exposes consumers to a different way
of accessing content, via menus, as opposed to traditional channel surfing.
This translates into adoption of products (e.g. VMVPD’s) that provide those
improved interfaces and easy app-based access. We are seeing that with homes
subscribing to those services. Also, SVOD provides extra channels to choose
from and when there is more choice, it impacts behavior and impacts traditional
linear services. Prior research has shown that once someone acquires a device
capable of streaming content, there is a change traditional TV use. However, people
will continue to watch the programs they like regardless of additional content
services they subscribe to and use them to complement current behaviors.
Charlene Weisler: How
can linear TV companies use SVOD to inform their business strategy?
Peter Katsingris: I’m not sure there is such a thing as a
“linear TV” company any longer. Every one of our clients has a cross-platform
strategy to reach their consumer, wherever that consumer is. Last year we
launched Nielsen SVOD Content Ratings. This allows our clients-- studios,
networks and others-- to see how their SVOD programming is performing as well
as how this content may be impacting their linear businesses or even help with
decisions around scheduling and licensing.
This article first appeared in www.MediaVillage.com
This article first appeared in www.MediaVillage.com
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